“Hour of Power” Dims for Crystal Cathedral
Posted on Oct 21, 2010 5:00pm PDT
The Crystal Cathedral, a mega church known for its televangelist show "Hour of Power", has filed bankruptcy, as reported by Yahoo News from Garden Grove California.
The church's debt includes a $36 million mortgage and $7.5 million owed to hundreds of vendors for unpaid services.
Several lawsuits have been filed against the church for debts accrued for advertising, and in one case, the rental of live animals to use in both their Easter and Christmas services. The church reported that they had been trying to negotiate a plan with venders when the lawsuits were filed.
Sheila Schuler Coleman, daughter of the Cathedral's founder and now the current senior pastor told reporters, "Tough times never last, every storm comes to an end. Right now, people need to hear that message more than ever. Everybody is hurting today. We are no exception."
Coleman's father, Reverend Robert H. Schuller Sr., founded the church in the 1950's.
In an effort to stay in business, the church has ordered many layoffs, cut the number of television stations that were airing "Hour of Power" and sold some of its property.
A committee was formed by the church for the vendors they owed money to in April. The vendors agreed to a moratorium to negotiate a repayment plan.
One vendor, Kristina Oliver, sees no likelihood of the full $57,000 ever being repaid for the cost of using of her live animals in the church's "Glory of Christmas" manger scene. Oliver stated, "The church never made any kind of advancement that they wanted to pay their debt, that they were willing to try to make it happen and every time we tried they told us, 'You can't tell us how to run our business. I'm upset because I have a 30-year relationship with them and you need to be up front, put all your cards on the table."
The church's soaring glass spire made it an "architectural wonder and tourist destination" for those that wanted to see a former drive-in theater transformed. The congregants themselves were attracted to sermons that promised power from positive thinking.
At one point in the history of the "Hour of Power" show 1.3 million viewers from 156 countries tuned in to watch.
Both the telecast, and the Sunday services, are said to continue per church leaders.
Jim Penner, one of the church's pastors and the executive producer of "Hour of Power" said that the church, as has been the case with other mega churches, have seen a drop in revenue. In 2009 the church received 30% less revenue and couldn't cut their expenses fast enough to keep their debt from accruing.
When several of the vendors filed lawsuits against the church, and obtained writs of attachment in an attempt to collect their cash, the vendors' committee fell apart.
The church now only spends the approximate $2 million per month it receives in donations and revenue, and has avoided credit completely. Penner said that the church still plans on paying back all of its vendors.
Penner said, "What we're doing now is we're trying to walk what we preach, we're paying cash for things as we go."
If you are considering filing a bankruptcy, speaking with a qualified attorney can help you plan your case. Click here for our directory today!